Entitlements paid out
After six months 150 miners will get what they’re owed.
Wednesday 20 December 2017
Cook Colliery miners made redundant following the collapse of Caledon Resources will receive all money owed to them by Christmas according to Administrators.
It has been a long wait for the miners since Cook Colliery - Queensland’s oldest underground mine - was flooded in March from an unknown underground water source. While the water was eventually removed from the mine, the event ultimately forced owner Caledon Resources into voluntary administration, then liquidation.
This month former mining contractor Bounty Mining finalised their $40 million purchase of Cook Colliery and the Minyango mining lease from liquidators.
The deal materialises an eye-watering loss for Caledon shareholder Guangdong Rising Assets Management Company (GRAM) who paid around $400 million for Caledon in 2010.
GRAM chairman Li Jinming at the time said the takeover would be a “significant step forward in the company’s strategy of acquiring more resources investments”.
Bounty mining has historically operated in the Bowen Basin as a thin seam mining specialist using technology developed in the US. However, like so many other contractors, they lost key contracts during the downturn and had since turned their attention elsewhere.
Executive Chairman of Bounty mining Greg Cochrane is a Bowen Basin veteran, telling Shift Miner back in 2013 that this was the fourth mining cycle he had experienced.
He says they now plan to reconfigure the Cook Colliery and develop the Minyango coal project.
“Bounty will bring the Cook Colliery back into production as a more flexible and efficient bord and pillar style mining operation (previously longwall),” he said.
“ Coal production is expected to commence in the first quarter of 2018, and Bounty aims to progressively increase production to a total 1.8 million tonnes of product over 12 months.
“These transactions will provide Bounty with revenue from the Cook Colliery and a mid-term development project in Minyango, for which a mining lease has already been granted.”
While the Minyango underground coal project is still a long way from being operational, it does have potential, with previous mine plans allowing for up to 7 million tonnes of coal exports a year.